World Chain Taps Circle USDC for 25M Users – Is $2 Trillion Stablecoin Boom Next?

On May 1, World Chain announced the integration of USDC, the stablecoin issued by Circle, and Circle’s Cross-Chain Transfer Protocol (CCTP).

The update allows World Chain’s 25 million users to transfer USDC from other blockchains and convert it into native stablecoins supported on the network. Transactions will no longer require centralized exchanges or third-party bridges.

The integration improves transaction speed and security for dollar-backed transfers. World Chain, the blockchain supporting Worldcoin, was co-founded by OpenAI’s Sam Altman.

How Does Native USDC Improve Security for World Chain Users?

According to a World Chain blog announcement, the integration of the USDC stablecoin combines the largest use case in crypto with the world’s most globally distributed network.

World Chain revealed that nearly two million users already hold bridged USDC in their World App wallets, and they’re set to upgrade to native USDC issued directly by Circle.

Previously, users on World Chain accessed bridged USDC stablecoin through Mini Apps, which allowed them to send remittances with minimal fees.

However, upgrading to native USDC, paired with Circle’s Cross-Chain Transfer Protocol (CCTP) V2, will simplify and improve these processes.

CCTP V2, which was first introduced in April 2023, is an improved version of Circle’s protocol designed to increase the speed and efficiency of USDC transfers across different blockchains.

While the specific date for the integration has yet to be revealed, the upcoming changes promise major benefits. For example, users can convert their existing bridged USDC on World Chain into native USDC.

Unlike bridged tokens, the native USDC will be fully backed by cash and cash-equivalent assets held in reserve.

Transfers to and from the blockchain will also be faster, more reliable, and more secure.

Businesses will be able to access the blockchain’s “Institutional On/Off-ramps with Circle Mint” feature as well. This allows eligible businesses to easily convert between traditional fiat currencies and digital assets like USDC.

Developers are not left out. They can integrate USDC directly into Mini Apps on World Chain.

Additionally, the blockchain disclosed plans to integrate EURC, a fully regulated euro-backed stablecoin. This will allow World Chain to serve European users needing MiCA-compliant solutions.

Will Stablecoin Growth Hit $2 Trillion or Stumble on Regulation?

World Chain’s integration of USDC is not surprising. It reflects the broader trend of stablecoins becoming a key part of the digital finance ecosystem.

DeFiLlama data shows that $4.902 billion worth of new stablecoins were added in the past week alone while the total stablecoin market is at $242.407 billion.

Tether (USDT) continues to dominate the stablecoin sector, commanding a market share of 61.65%. Close competitors include USDC, Ethena’s USDe, and MakerDAO’s DAI.

Major financial institutions are also taking notice.

Citigroup predicts the stablecoin market could exceed $2 trillion by 2030. However, it also warns that if regulatory and integration issues remain, it may be capped at $500 billion.

U.S. policymakers are weighing in as well. Federal Reserve Governor Christopher Waller acknowledged the potential of dollar-backed stablecoins to reinforce the global role of the U.S. dollar.

Meanwhile, Mastercard, a giant in global payments, recently introduced a “360-degree” strategy to support stablecoin payments across over 150 million merchants worldwide.

Stripe, another major player in the payments space, is developing its USD-backed stablecoin.

Outside North America and Europe, interest in stablecoins is growing fast, especially in emerging markets.

Brazil is a prime example.

Itaú Unibanco, one of the country’s largest banks, is exploring the launch of its stablecoin. This follows reports that in September 2024 alone, 4.4 million Brazilians moved $4.2 billion worth of crypto.

Stablecoins were the dominant force behind these transactions. They accounted for 71.4% of the total volume, approximately $3 billion.

As Latin American adoption soars, EU’s MiCA rules and delayed U.S. guidance loom over the $2T growth forecast.

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